Chase Freedom Flex℠ Review

Chase shook up its popular line of Freedom credit cards in September 2020 by closing the Chase Freedom® to new applications and rolling out the new Chase Freedom Flex℠ — a World Elite Mastercard with a $0 annual fee and a combination of rotating and ongoing rewards. What makes this card really appealing is a combination of benefits: a generous and tiered rewards earning structure, a solid sign-up bonus as well as generous 0% intro APR promotions.

Cardholders with the classic Chase Freedom® can keep the card if they choose, according to a Chase spokesperson. The rotating 5% categories for that card and the Chase Freedom Flex℠ will be the same going forward. While cardholders have the option of requesting a product change, that won’t allow for earning a sign-up bonus like applying for a new Chase Freedom Flex℠ would.

In short, the Chase Freedom Flex℠ is a great choice for consumers who want to earn cash back on dining and drugstore purchases and are willing to pay attention and activate a new bonus category each quarter.

We’ll take a look at where the Chase Freedom Flex℠ excels, where it falls short and another card to consider for consumers looking to earn maximum cash back on dining out purchases.

• Generous rewards

  Typically, cards with rotating 5% cashback categories offer just 1% on purchases outside the current quarter’s category. The Chase Freedom Flex℠ stands out by offering rotating 5% categories alongside categories that earn 5% and 3% on an ongoing basis. 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter. Plus, earn 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% on dining and drugstores, and 1% on all other purchases. Dining includes takeout and eligible delivery services.

• Easy-to-earn sign-up bonus

  Earn a $200 bonus after you spend $500 on purchases in the first 3 months from account opening.

• Intro APR on purchases and balance transfers

  Enjoy a 0% intro APR on purchases for 15 months. After, a 19.74% - 28.49% variable APR applies. Plus, cardholders can get a 0% intro APR on balance transfers for 15 months, after which a 19.74% - 28.49% variable APR applies. The balance transfer fee is intro fee: $5 or 3%. after 60 days: $5 or 5%.

• $0 annual fee

  The annual fee for the Chase Freedom Flex℠ is $0. As long as you don’t incur interest charges or fees, all the rewards you earn with this card are net cash back.

• Mastercard World Elite benefits

  Get cellphone protection of up to $800 per claim with a $50 deductible per claim. Maximum two claims in a 12-month period and $1,000 reimbursement per year. Plus, enjoy discounts on merchants such as Boxed, ShopRunner and Fandango.

• Free credit score access

  View your VantageScore for free through Credit Journey.

Remember that you must activate the new category each quarter or you’ll earn just 1% cash back. Also be aware that the 5% cashback rate is only for the first $1,500 you spend in the bonus categories, after which you’ll earn 1% on all purchases until the next quarter. This means the maximum you can earn at the higher rate is $75 cash back per quarter. Here are the bonus categories for 2024:

• Jan. through March: Grocery Stores (excluding Walmart® and Target®), Fitness Clubs & Gym Memberships, Self-Care & Spa Services
• April through June: TBD
• July through Sept.: TBD
• Oct. through Dec.: TBD

• Foreign transaction fee

  The Chase Freedom Flex℠ has a foreign transaction fee of 3% of each transaction in U.S. dollars. If you need to travel outside the United States, tuck this card safely away at home and take a card that charges no foreign transaction fees instead.

• Bonus categories require activation

  As is standard for cards with rotating 5% categories, you must activate a new category each quarter. If you neglect to do so, you’ll earn just 1% back in those categories.

• Spending cap for bonus categories

  This card offers a generous cashback rate, but there’s a catch. In the rotating 5% bonus categories, after you spend $1,500, your earning rate will decrease to 1% for the remainder of the quarter. This means you can earn up to $75 in cash back each quarter at the higher rate.

Compare it to the U.S. Bank Altitude^® Go Visa Signature^® Card

Whether you prefer to dine in at a restaurant and enjoy the atmosphere or order takeout so you can eat in the comfort of your own home, the U.S. Bank Altitude^® Go Visa Signature^® Card will earn a mouthwatering amount of points either way for a $0 annual fee. Earn 4X points on dining, takeout, and restaurant delivery, 2X points at grocery stores, grocery delivery, gas stations, EV charging stations and on streaming services. Plus, a $15 credit for annual streaming purchases like Netflix, Hulu, Spotify®, Apple Music, Disney+, HBO Max and more! And earn 1X points on all other eligible purchases.

If dining is one of your heavier spending categories, the U.S. Bank Altitude^® Go Visa Signature^® Card offers a higher ongoing rewards rate for that than the Chase Freedom Flex℠. And consumers who like consistency will appreciate that the U.S. Bank Altitude^® Go Visa Signature^® Card doesn’t switch things up every few months like the Chase Freedom Flex℠ does with its rotating 5% categories.

However, for those willing to activate a new category each quarter, the Chase Freedom Flex℠’s combination of rotating and ongoing rewards offers an opportunity to earn a generous amount back.

For example, if you hit the $1,500 spending cap on the rotating categories every quarter, that’s $300 in cash back for the year — and that’s not counting what you’ll be earning on a regular basis for dining, drugstore purchases and travel booked through the Chase portal.

If ongoing rewards on dining and drugstore purchases, as well as rotating categories that earn 5% back on up to $1,500 per quarter (which means $75 in cash back) sounds good to you, the Chase Freedom Flex℠ is a great card to add to your wallet. But before applying, ensure you understand the unwritten Chase 5/24 rule. In short, Chase will deny your application if you’ve been approved for five or more personal credit cards from any issuer within the past 24 months.

Another card to consider is the Chase Freedom Unlimited^®, which got an upgrade around the same time Chase rolled out the Chase Freedom Flex℠. The main difference between the two cards is that while the Chase Freedom Flex℠ offers rotating 5% categories, the Chase Freedom Unlimited^® offers a higher base rewards rate on purchases not in a special category.

Both cards earn Chase Ultimate Rewards points (though they’re marketed as cashback cards), and if you have the Chase Sapphire Preferred^® Card, the Chase Sapphire Reserve^® or the Chase Ink Business Preferred^® Credit Card, these points can be transferred to your Sapphire card and redeemed through the Chase Ultimate Rewards portal for more value toward booking travel.

For those wanting another option for a card earning 5% cash back on rotating categories, the Discover it^® Cash Back is a top-of-the-line choice. Earn 5% cash back at different places each quarter up to the quarterly maximum when you activate. 1% unlimited cash back on all other purchases - automatically. However, the Chase Freedom Flex℠ also offers ongoing rewards categories, which the Discover it^® Cash Back doesn’t have.